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Duplicate content is not good, no matter how you look at it. Just because the forum software you use creates it automatically out of the box doesn't mean you are safe from having your links devalued.
The big argument against this is that "my pages are being indexed without any SEO". Well, how about having your number of pages indexed being cut down about 400% and having the remaining pages indexed higher after allowing google a year to fully index you and re-evaluate your page value. I think you will be much happier.
vBulletin creates many pages for each URL, and naturally, those links share the value that they could be combining for one strong URL. I have an ATV community that is one of the newest ATV communities on the web. Just started it this year, and started it with vbulletin and vbseo at the same time. For 90% of the typical ATV related searches (manufacturer name, manufacturer forums, model specific forums, etc..) I am ranking higher than forums that have been around for 6-7 years.
I am not saying you need to use vbseo to do this, but i am saying that using something, either bought, or you own, to condense these URL's is going to benefit you.
As far as the benefit of vbseo, it does it with ease, and the company is constantly updating the software to make it currenty with vbulletin. In addition, there are many "on page SEO" modifications added to the vbulletin pages automatically including cleaning up html, optimizing html, and if you use adsense, it automatically adds google's section targeting for more relevant ads on your site.
As for dynamic vs. Static, google can index both. This goes back to an above comment though. Many people have complained about a link ot their site on google that is invalid. It is a dynamic link that got picked up by google that was only valid for that visit when google was indexing. Sure, it picked up the exact URL, but it also indexed the string of numbers/letters for an additional URL going to the same content (duplicate). Static URL's eliminate this, and they are much cleaner to look at.
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